President Biden’s first budget proposal outlines the vision of an expansive federal government in the coming years with increased spending in areas such as infrastructure, education and climate change.
The $ 6 trillion fiscal year 2022 plan, released on Friday, detailed Mr. Biden’s economic agenda. It includes two proposals that he put to Congress: the American Jobs Plan, which calls for new spending on the country’s infrastructure, and the American Families Plan, which addresses issues such as childcare, universal pre-kindergarten, and paid family and sick leave.
The budget expands a proposal Mr Biden released in April that covered discretionary spending that outlined his desire to distribute funds through domestic authorities, a sharp reversal of President Donald J. Trump’s spending policy.
Here are some of the notable proposals in Mr Biden’s budget proposal.
– Thomas Kaplan
Climate change is back in the budget.
The budget proposal adds $ 14 billion in new funding for government agencies to policies and programs dedicated to climate change – in stark contrast to the Trump administration, which unsuccessfully tried to zero funding for dozens of clean energy programs to put.
It also includes the first application for international assistance on climate change since 2017. The Biden administration will ask Congress for $ 1.2 billion for the Green Climate Fund, a United Nations agency established under the Paris Agreement on Climate Change. to help developing countries.
President Barack Obama pledged $ 3 billion to the fund, but only delivered a third of the money during his tenure. Mr Trump has withdrawn from the Paris Agreement and also stopped making payments to the Green Climate Fund. Mr Biden re-signed the United States to the global agreement on his first day in office and pledged to restore Mr Obama’s foreign aid commitments.
Domestically, the Biden government said its cross-agency funding would help build the country’s capacity for the transition from fossil fuels to wind, solar and other renewable energies. The budget proposal also details the government’s pledge to target at least 40 percent of climate change spending to communities of color, which studies have shown are disproportionately affected by both air pollution and climate change.
The government is proposing $ 11.2 billion for the Environmental Protection Agency, 22 percent more than last year. The E.P.A. was consistently focused on deep cuts under the Trump administration, and its climate and health programs have typically received particularly severe blows.
The new draft calls for new spending on environmental infrastructure – such as replacing all of the country’s lead pipes – after a decade of budget caps and cuts that, according to the government, have resulted in the agency’s budget falling 27 percent since 2010.
That includes $ 936 million for a new E.P.A. Program to Combat Racial Differences in Exposure to Pollution. This program includes $ 100 million for community air quality monitoring and notification technology that provides real-time data on the most polluted locations.
The budget provides $ 580 million to plug old oil and gas wells and clean up abandoned mines – a plan the Biden government is putting in place for both new jobs to protect communities from the environmental threats facing the thousands of old abandoned mines across the country, as well as providing a way to prevent future global warming pollution.
– Lisa Friedmann
A plan to finance clean energy technologies.
Mr Biden’s budget provides for more than $ 800 billion in new spending and tax breaks over the next decade to accelerate the adoption of clean energy technologies to combat climate change, from hydrogen fuels to next-generation nuclear power plants.
Mr Biden has vowed to cut America’s greenhouse gas emissions, which are warming the planet, by at least 50 percent below 2005 levels by 2030 to stave off the worst effects of global warming, and the White House is betting that it will in large part do so Use the federal government’s resources to fund millions of new wind turbines, solar panels, and electric vehicles, as well as newer non-carbon-producing technologies.
The overwhelming majority of new energy spending proposed in the budget would depend on Congress approving Mr Biden’s infrastructure proposal, which still faces an uncertain fate. Senate Republicans have opposed spending on items such as electric car charging stations.
In his budget, Mr Biden proposes $ 265 billion to add and extend federal tax breaks for companies that build clean energy sources like offshore wind turbines or on-grid battery storage over the next decade. He is also calling for $ 9.7 billion in tax credits to preserve America’s existing fleet of nuclear reactors that do not produce carbon dioxide emissions but have been at risk of decommissioning in recent years due to competition from cheap natural gas.
The budget also provides $ 10 billion in tax credits for trucks that do not produce planet-warming emissions, such as wind and solar power from far-flung regions of the country. And it proposes spending $ 23 billion over the next decade on tax credits for companies installing carbon capture technology in power plants or factories.
Mr Biden moves to increase the Department of Energy’s budget by $ 4.3 billion, or 10 percent, with an emphasis on enabling the use of clean energy sources. That includes $ 1.9 billion to make homes more energy efficient and expedite transmission line approval.
Mr Biden is also calling for federal agencies to spend $ 50 billion over the next decade to source clean energy technologies for their own use, including electrified mail vehicles and low-carbon materials like steel and cement, and electricity from advanced nuclear power plants that are still under development .
To a lesser extent, Mr Biden also suggests cutting federal government spending on fossil fuels by removing $ 35 billion in subsidies to oil, gas and coal companies over the next decade, including lifting tax breaks for the depreciation of wells and a tax credit for drilling costs. The government is proposing to raise an additional $ 84 billion by changing the way the government handles production and overseas revenues for oil and gas producers.
In addition to spending, Mr Biden’s climate plans will be heavily dependent on a separate proposal for a clean electricity standard that would require the country’s electricity suppliers to steadily increase their use of new low-carbon energy sources until they zero their emissions in 2035 This policy is only mentioned in passing in the budget and requires the approval of Congress.
– Brad Plumer
FEMA wants to cushion the rising costs of flood insurance.
The Federal Emergency Management Agency, on which Mr Biden relied heavily during the early months of his presidency, would increase its total budget by 7 percent to $ 28 billion. Much of the agency’s funding comes in the form of congressional emergency syringes after a disaster.
However, FEMA’s budget proposal is important for another reason: it shows the government’s struggle to cope with the rising costs of climate change and how those costs are affecting American households.
As climate change worsens, more frequent and severe flooding has led FEMA to increase the cost of federal flood insurance, which covers approximately five million policyholders. These price hikes have sparked fierce opposition from lawmakers who warned their constituents would suffer, including Senator Chuck Schumer, Democrat of New York and majority leader, who opposed FEMA’s rate revision in March.
The budget proposal addresses this issue and proposes subsidizing the premiums for homeowners who otherwise might not be able to afford flood insurance. The goal of these subsidies, according to FEMA, is to increase the number of people in floodplain areas that are covered.
– Christopher Flavelle
The most ambitious health ideas don’t have numbers.
The budget for the Department of Health and Welfare includes substantial increases for the Centers for Disease Control and Prevention and the National Institutes of Health. But it is perhaps more remarkable for what it does not contain.
In its budget summary, the White House has signaled its commitment to a number of key health reform proposals, including the creation of public health insurance; an effort to reduce the cost of prescription drugs; a plan to lower the entry age for Medicare; and an expansion of Medicare benefits to add eye, hearing, and dental protection.
But the cost of these far-reaching policy changes has not been factored into the official budget calculations, making it difficult to estimate their real cost.
These omissions are unusual. The Trump administration’s budgets also included a number of major health initiatives, such as the repeal of the Affordable Care Act and a number of other prescription drug reforms. The budget of this administration contained at least a rough calculation of the costs and savings associated with these ideas.
Several of the proposals are actively discussed on Capitol Hill. The heads of two major congressional committees announced this week that they would begin work on a new proposal for a public option that would allow certain Americans to get state health insurance instead of private insurance. The house worked on it for years an invoice to lower prescription drug prices and expand Medicare coverage to include more services. And progressives have been pushing for enhanced Medicare eligibility in recent months, a proposal that was also part of Mr Biden’s campaign platform.
Unlike the budgets of the Obama and Trump years, the Biden budget does not propose any policy changes to Medicare. Both previous governments had proposed a number of small changes designed to make the program more efficient without diminishing its usefulness. Instead, the budget summary states that “we can reform Medicare payments to insurers and certain providers to reduce overpayments and increase incentives for value-based care,” a possible sign that such initiatives are being considered in the future could become. The only major change to Medicare is an increase in the budget for the fraud department, additional spending that is estimated to save about $ 1 billion a year.
While each of the unspecified policy ideas are popular with Democratic voters, each has the potential to anger key health care lobbies by reducing their funding or replacing their market share with direct government services.
The budget includes an extension of the new Obamacare subsidies passed by Congress as part of the stimulus package passed in March. These subsidies, which lower the cost of health insurance for most Americans who buy their own insurance, are estimated at $ 163 billion over the next decade. It also includes an additional $ 400 billion for home and community-based care for the elderly and disabled for over a decade, a change proposed as part of the American employment plan.
– Margot Sanger-Katz
Funding for dealing with migrants on the southern border.
Mr Biden filed for $ 3.3 billion for the office that manages migrant children and adolescents arriving in record numbers this year alone at the US-Mexico border. It’s a $ 1.4 billion increase over what the Trump administration was aiming for in its 2021 budget proposal.
The budget provides funding for asylum and refugee programs to support up to 125,000 admissions in the 2022 budget year. And to clear the backlog on immigration cases, the budget is $ 891 million for immigration judges and their staff. As part of this effort, the government applied for $ 345 million for the U.S. Citizenship and Immigration Service to handle asylum cases that had been in arrears for years.
The government has made efforts to place migrant children in health and social centers with family members in the United States, an average of 39 days on Wednesday.
The budget request includes $ 15 million to test a new program that provides migrants with legal representation that can help them move through red tape faster.
– Eileen Sullivan
The Pentagon is turning to a possible war with China.
After nearly 20 years of funding overseas battles through additional accounts, the Pentagon plans to pay for its wars in Iraq, Syria, Afghanistan and other countries in 2022 with a total budget of $ 715 billion.
- A new year, a new budget: Fiscal year 2022 for the federal government begins October 1, and President Biden has announced what he plans to spend from that point on. But all expenses require the approval of both chambers of Congress.
- Ambitious total expenditure: President Biden wants the federal government to spend $ 6 trillion in fiscal year 2022 and total spending to rise to $ 8.2 trillion by 2031. That would push the United States to its highest sustained federal spending level since World War II over the next ten years, exceeding $ 1.3 trillion.
- Infrastructure plan: The budget outlines the desired first year of the President’s investment in his American Jobs Plan, which aims to fund improvements to roads, bridges, public transportation and more for a total of $ 2.3 billion over eight years.
- Family plan: The budget also addresses the other major spending proposal that Biden has already launched, his American Families Plan, which aims to strengthen the United States’ social safety net by expanding access to education, lowering childcare costs, and bringing women in the world of work are supported.
- Compulsory programs: As usual, mandatory spending on programs like Social Security, Medicaid, and Medicare is a significant part of the proposed budget. They grow as America’s population ages.
- Discretionary issues: Funds for the individual budgets of the agencies and executive programs would reach around $ 1.5 trillion in 2022, an increase of 16 percent over the previous budget.
- How Biden would pay for it: The president would fund his agenda in large part by increasing taxes on businesses and high earners, which would begin to reduce budget deficits in the 2030s. Administrative officials said tax increases would fully offset employment and family plans over the course of 15 years, which the budget request supports. In the meantime, the budget deficit would stay above $ 1.3 trillion each year.
While the army would slightly increase the funds for the training of Afghan security forces, its total expenditure on combat missions would decrease by more than 21 percent to 18.4 billion US dollars.
The armed forces’ budget proposals reflect the Biden government’s move away from fighting insurgent groups and a renewed focus on preparing for conventional wars against countries armed with similar ships and aircraft, with China as a priority.
The naval services are betting on the need for new anti-ship missiles, including the ability to allow the Marine Corps to launch land-based attacks on enemy warships on the horizon from truck launcher missiles. Rather than pursuing the previous government’s envisaged fleet of 355 ships, funding eight new ships in the new budget would result in an overall modest increase to 296 ships in 2022, even after the Navy decommissioned a number of the earliest inshore combat ships plagued by mechanical problems.
The army, navy and air force are all investing in hypersonic weapons – missiles with conventional warheads that can travel many times the speed of sound and hit targets at ranges previously only possible by cruise missiles or nuclear ballistic missiles. After the United States withdrew from the Nuclear Medium Forces Treaty in August 2019, the Army continued to develop artillery missiles with ranges previously prohibited by that treaty.
The Pentagon plans to purchase 48 more F-35 Joint Strike Fighters for the Air Force and 37 for the Navy and Marine Corps.
Military personnel is said to be increased by 2.7 percent, and troop strengths would remain relatively constant, with slight reductions in all services except the Air Force, which plans to increase its ranks by less than one percent.
– John Ismay
Reinvestment in diplomacy, democracy and refugees.
Mr. Biden has emphasized the value of restoring American diplomacy and alliances, and his budget calls for a $ 6.3 billion increase for the State Department and international programs, more than 11 percent above current levels – and nearly 50 percent more than the last budget proposed by Mr. Trump, which repeatedly targeted cuts to the State Department.
The $ 63.6 billion proposal prioritizes the coronavirus threat and includes $ 1 billion in foreign aid to fight the spread of Covid-19, advance global health security programs, and step up research to identify and support it Containing future virus outbreaks.
Programs to support refugees and victims of conflict would also grow: the budget provides for US $ 10 billion in humanitarian aid for vulnerable people abroad. And it would provide $ 861 million in assistance to Central American countries to tackle the root causes of migration from those countries to America’s southern border.
In response to growing cybersecurity threats and breaches, the budget includes $ 500 million for the Technology Modernization Fund, $ 110 million for the Cybersecurity and Infrastructure Security Agency, and $ 750 million to “draw on lessons from SolarWinds.” – Respond to incident, “a massive encroachment on federal computer networks attributed to Russia.
– Michael Crowley
More resources to fight domestic terrorism and violence against women.
The Justice Department’s proposed budget includes $ 1.5 billion to fight domestic terrorism, an increase of more than 12 percent from the previous year.
This allocation includes more than $ 100 million in additional funding for the identification and prosecution of domestic terrorists and research into the root causes of domestic radicalization. The department’s budget proposal also provides over $ 1 billion to combat cyber threats, with the largest increase in cyber resources in more than 10 years.
The budget calls for the largest ever increase for the civil rights department. It also includes funding to enforce key elements of Mr Biden’s domestic agenda on a number of issues the previous administration did not prioritize, including enforcement of environmental laws, efforts to end sex abuse and initiatives to curb gun violence.
The Department of Justice’s Violence Against Women Act programs could receive $ 1 billion, nearly double the 2021 amount, to fund existing programs and new initiatives that expand protection for transgender gender-based violence survivors and support people of color who are may not have had access to interventions and counseling in the past.
The proposed budget also provides $ 2.1 billion to combat gun violence as a public health crisis, a figure about 12 percent higher than last year.
– Katie Benner
Investing in Poverty Schools.
The household describes the need to address ingrained educational differences as both a moral and an economic imperative.
It includes an investment of $ 36.5 billion in high-poverty schools, an increase of $ 20 billion year over year – making it the largest annual increase in the program, known as Title I, since its inception by President Lyndon B. labeled .Johnson.
That includes $ 7.4 billion for the block grant for childcare and development, an increase of $ 1.5 billion over the previous year, designed to improve access to quality, affordable childcare.
It also plans to increase support for early childhood programs by increasing the maximum Pell grant by $ 400, the largest one-time increase since 2009.
Mr. Biden is also committed to expanding the Head-Start programs, which provide early learning and support for low-income students. The budget includes an investment of $ 11.9 billion in the program, an increase of $ 1.2 billion.
– Annie Karni
A renewed emphasis on worker protection.
The budget provides a significant increase in resources for the Department of Labor, including more money for the Occupational Health and Safety Authority, which is responsible for ensuring worker safety, and the Payroll Department, which enforces fair labor laws. Mr Biden proposes a 14 percent increase in the Ministry of Labor’s budget.
OSHA was widely criticized during the pandemic for not doing enough to protect workers at meat packaging and other plants where thousands of workers have been infected. According to the National Employment Law Project, the agency has lost hundreds of inspectors in recent years, hampering its ability to conduct thorough inspections.
– Glenn Drossel
The I.R.S. would get more money to catch tax evaders.
The Internal Revenue Service’s budget has been exhausted for years as the Republicans tried to steal funds in negotiating funds.
The Biden administration’s budget changes this and gives the tax collection agency $ 13.2 billion to step up enforcement activities. A well-staffed I.R.S. is central to the White House’s plan to reduce the “tax gap” and tackle large corporations and wealthy individuals who have avoided paying their debts.
The Ministry of Finance, which the I.R.S. assumes a $ 80 billion investment in the I.R.S. Over a period of 10 years, it could generate $ 700 billion in additional tax revenue.
In addition to its usual tax collection obligations, the I.R.S. was also at the center of the Treasury’s economic relief efforts. She was responsible for distributing the stimulus payments and will soon be paying out the child allowance every month.
Treasury Secretary Janet L. Yellen warned this week that without sufficient resources, her department, which has allocated US $ 15 billion in budget, “cannot continue to be a good steward of this recovery.”
– Alan Rappeport